Does paying off credit cards every month reduce your chances of getting a credit line increase?

Question

My credit score is 702 and I pay off my credit cards every month. I called VISA to see if I can get an increase in my credit limit and they denied me. They said the reason for the decline was ACCOUNT ULTILIZATION. Does anyone know what that means.

Answer 1

Actually, that usually means you are using too much of your credit line.

Paying it off each month does not reduce your chance to get a credit line increase.... it's very good to do that.

Answer 2

good way of improving your scores is by paying off some of the bad debt you may have accrued. The less money you owe people, the better your credit rating will be. Once you have a zero balance on your card, wait for at least a month. Even though you may have paid off the entire balance on your card each month, this will only get reflected as a balance which gets reported to the Credit Bureau, a little later. Read more from: http://www.credit-card-gallery.com/article/196,Increasing_Your_Credit_Rating

Answer 3

It sounds like you have a very small credit limit. Are you using most of it, even if you are paying it in full every month? How long have you had the card?

I've always found that paying the balance in full every month results in increases in the limit every year or so.

Maybe you don't have a long enough history.

Answer 4

The best way to get a credit limit increase is to call and try to cancel the card. They will ask you why. Tell them because you are going to find a better one with a higher limit...then ask (or they might ask you) if you can get one through them.

If they don't end up giving you an increase, apply for other cards.

Answer 5

I pay off my credit card every month and I have recieved two or three credit increases. I would try to call them up again and explain your situation. Also, mention the fact that you are thinking of going with another credit card company....see how fast they increase your credit.

Answer 6

if you pay it off every month, the bank is not making any money out of you from interest, so they dont really care about increasing your limit, as they wont get any benefit out of it. unfortunately, those of us who are a little bit smarter with our money are not who the banks are after. they prefer you to default or only pay the minimum, because then they can get more money from you. you should always pay your card off every month though, so dont use this as a reason not to.

perhaps try and get a card from somewhere else with a higher limit?

Answer 7

Sometimes credit card companies work in perverse ways. I would apply for another card that will give you the limit you want. Then call the first company back and tell them that their poor customer service has caused you to have to fire them.

Answer 8

a small loan consolidation works. I found interesting information about your answer & options here. http://all-debt-consolidation-loan.blogspot.com/2007/07/loan-consolidation.html Good luck!

Answer 9

it means that your not showing them that you can pay bills on time /over time... spend 100$ take 90days to pay it off, your just making purchases to not pay cash, remember this country runs on debt!!!